Mr Ohno Owns and Operates a Part-Time Service Business That

question 69

Essay

Mr Ohno owns and operates a part-time service business that generates $80,000 annual taxable income. His federal tax rate on this income is 17%. Because of recent legislation, this rate will increase to 25% next year.
A. Based on a static forecast, how much additional revenue will the federal government collect from Mr Ohno next year?
B. How much additional revenue will the federal government collect if Mr Ohno decides to work fewer hours and consequently earns only $50,000 next year?

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Definitions:

TQM

Total Quality Management; a comprehensive approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

Six Sigma

A set of techniques and tools for process improvement that aims to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.

Entrepreneurship Programs

Structured educational or training initiatives designed to impart entrepreneurial skills and foster an entrepreneurial mindset among participants.

Innovation Programs

Initiatives or projects designed to foster new ideas, technologies, or methods within an organization to enhance its competitiveness and efficiency.